Aptiv Plc: China Headwinds Outweigh Non-Auto Optionality; Downgrade to EW

Research evidence excerpt

M

Idea

August 5, 2026 12:54 AM GMT

Morgan Stanley & Co. LLC

Aptiv Plc | North America

Andrew S Percoco

Equity Analyst

China Headwinds Outweigh

Non-Auto Optionality;

Downgrade to EW

Daniela M Haigian

Equity Analyst

Jahvonte G Bain

Research Associate

Katherine A Bennorth

Research Associate

What’s Changed

Aptiv Plc (APTV.N)

From

To

Rating

Overweight

Equal-weight

Price Target

$71.00

$55.00

AlphaSignals Earnings Reaction

Weakens our thesis

Modest shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

APTV is in a strong position to benefit from secular growth

trends in various non-auto end markets such as energy storage,

robotics, and A&D. That said, pressure to the core auto business,

which may continue into 2H26, drives our decision to move to

the sidelines. D/G to EW with a $55 price target.

Bright long-term outlook but moving to the sidelines given the headwinds in the

Aptiv Plc (APTV.N, APTV UN)

Autos & Shared Mobility | United States of America

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

Mkt cap, curr (mm)

52-Week Range

Fiscal Year Ending

Equal-weight

In-Line

$55.00

$47.72

$10,121

$78.49-46.43

12/25 12/26e 12/27e 12/28e

EPS ($)**

Prior EPS ($)**

P/E

EPS ($)§

Div yld (%)

3.51

18.4

7.79

0.0

5.74

6.08

8.3

6.19

0.0

6.96

7.54

6.9

6.80

0.0

8.32

8.93

5.7

7.81

0.0

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

Quarterly EPS ($)

2026e 2026e

Prior Current

2027e 2027e

Prior Current

Quarter

2025

storage systems and data center 800VDC architectures. However, deterioration in

Q1

Q2

Q3

Q4

(0.01)

1.82

1.55

0.20

the core auto business and execution challenges are creating a significant near-term

e = Morgan Stanley Research estimates, a = Actual Company reported data

core auto business. We continue to believe that Aptiv is well positioned to benefit

from secular growth across emerging non-auto markets, including robotics, energy

1.65

1.72

1.03a

1.63a

1.42

1.66

…